Leyland group to be restructured

Press, 14 May 1985, Page 28

Leyland group to be restructured

PA Wellington The Auckland-based Leyland investment group is to be restructured. The plan includes the floating of a new investment company to raise $l2 million. The package will affect both Leyland Investments and Leyland Growth and will also involve NZI Investment Services, Ltd, acquiring a 20 per cent stake in Leyland Investments. Leyland Investments will become a holding company, with interests in a series of satellite companies. It intends to hold 40 per cent of Leyland Growth. The new company will assist successful and growing organisations by taking significant equity positions. The Leyland chairman, Mr John Strevens, said the new company would acquire strategic holdings in listed and unlisted companies and would seek active participation in their management.

The announcement said NZIIS had purchased 250,000 Leyland Investments shares off-market. There would also be a placement of 500,000 shares at 220 c in exchange for the 916,667 shares at 120 c in Leyland Growth now held bv the NZI C. This would require lerce Commission approval. An extraordinary meeting would be called to approve the further issue of 460,028 shares

to bring the NZIIS stake in Leyland Investments to 20 per cent.

The announcement said the new company would issue 24 million 50c shares at par. Shareholders in the two existing Leyland companies would be offered a l-for-2 rights issue and Leyland Investments would take 9.6 million shares, or 40 per cent. Clients of NZIIS would take about 2 million shares and the balance of 6.6 million shares would be available for public subscription. Leyland Investments, Ltd, has declared a profit, including equity income, of $370,729 ($89,304) for the six months to March 31. Net income was $393,662 ($97,758), including after-tax equity profits of $228,227 from Leylano Growth. Tax was $22,933 ($8454). The interim dividend will be 4c a share tax-free, to be paid on May 31. Books close on May 24.

Leyland said the asset backing of each share at March 31, based on the market value of the portfolio, was 180 c.